Polish meat sector still struggling

The European Commission says that Polish food processing companies are now making good progress towards reaching EU hygienic standards. However, the latest reports from the country Agriculture and Food Ministry suggest that the meat processing sector is continuing to struggle.

Poland's national press has reported that on a recent tour by EC representatives of food processing companies in the country, the evaluation was largely favourable, with compliance ratings said to be improving rapidly. The news came as a surprise to many industry observers, as previous visits towards the end of last year had found that many companies were still struggling to reach the required standards.

However, it does still seem that this is the case for the meat processing sector in particular, as some 1,200 businesses in the sector have still, as yet, failed to be given the all-clear.

This week, agriculture ministerWojciech Olejniczak told reporters that the sector was facing a series of imminent closures before the deadline for accession.

"We estimate that up to 1 May, between 300 and 400 slaughterhouses will need to be closed as they won't be able to adjust for the EU," he said during a visit to Brussels earlier this week.

Olejniczak did go on to explain that the majority of those businesses in questions were smaller players operating on a local basis. He also said that overall the closures are not expected to have much impact on the sector.

But speculation over a number of the larger meat businesses is now running high, with several leading foreign players, such as the US-based Smithfields Foods, trying to muscle in on potential takeover targets. Larger national businesses are also on the look out, with ZM Duda's chairman Jerzy Rey saying that his company may acquire four new businesses in the sector this year.

The Ministry has also confirmed that some 300 livestock and dairy facilities will be given up to 9 months to bring their facilities up to the expected standarrds after 1 May.

Current estimates from authorities are that of the 1,513 meat processors who are trying to meet compliance with EU safety regulation, approximately two thirds will be certified on or before the deadline. However it seems that this might be a tall order considering that currently only 127 meat processors are licensed to export their produce to EU countries.